Buying a Short Sale as a Limited Liability Corporation (LLC) or Corporation?

February 7, 2013

Did you know that if the buyer of a Short Sale is a Limited Liability Company (LLC) or Corporation, there are specific documents that must be completed? If required documents are not provided, processing of the Short Sale will be delayed, and ultimately the file will be closed if not supplied timely.

If the buyer is an LLC, the following documentation must be provided to the Short Sale Negotiator:

1. Articles of Organization and Fully Executed Operating Agreement (contains Members Agreement which lists Officers and their ownership interest in the company)
2. Proof of funds or pre-approved letter from lender in the LLC name
3. Proof of the buyer's connection to the LLC, if no Operating Agreement is available.

If the buyer is a Corporation, the following documentation must be provided to the Short Sale Negotiator:

1. Copy of Articles of Incorporation & Fully Executed Bylaws
2. List of Shareholders and Officers
3. Proof of funds or pre-approved letter from lender in the Corporation's name
4. Proof of buyer's connection to the Corporation

Failure to provide the required, legible, fully executed documents may cause delays in processing the Short Sale file, and may result in the file being declined or closed.

If you have questions regarding Short Sales or any Real Estate transaction, please contact our office.

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